Drug Firms Price-Fixing Scandal to Benefit Consumers

Drug Firms Price-Fixing   

    Scandal to Benefit

        Consumers

M.A. Dworkin

     USVI - V.I. Attorney General Gordon C. Rhea joined a coalition of 48 States and Territories announcing two settlements, with Lannett Company, Inc and Bausch Health US, LLC and Bausch Health America, Inc, totaling $17.85 million to resolve allegations that both companies engaged in widespread, long-running conspiracies to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade with regard to numerous generic prescription drugs. 

     As part of their settlement agreements, both companies have agreed to cooperate in the ongoing multistate litigation led by Connecticut against 30 corporate defendants and 25 individual executives. Both companies have further agreed to a series of internal reforms to ensure fair competition and compliance with antitrust laws. 

     The Lannett and Bausch settlements follow prior settlements with Apotex and Heritage which totaled $49.1 million.

     “When companies manipulate the market, consumers pay the price,” said Attorney General Rhea. “The U.S. Virgin Islands is proud to stand with our State and Territorial partners to hold drug manufacturers accountable and protect access to affordable medications.”

     The cases all stem from a series of investigations built on evidence from several cooperating witnesses who were at the core of the different conspiracies, which entailed a massive document database of over 20 million documents, and a phone records database containing millions of call detail records and contact information for over 600 sales and pricing individuals in the generics industry. 

     There was an interconnected web of industry executives whereby these competitors met with each other during industry dinners, “girls’ nights out”, lunches, cocktail parties, golf outings and communications via frequent telephone calls, emails and text messages that sowed the seeds for their illegal agreements. Throughout the complaints, the defendants are quoted as using terms like “fair share,” “playing nice in the sandbox,” and “responsible competitor,” to describe how they unlawfully discouraged competition, raised prices and enforced an ingrained culture of collusion.  

     If you purchased a generic prescription drug manufactured by either Lannett or Bausch between May 2009 and December 2019, you may be eligible for compensation. To determine your eligibility, call 1-866-290-0182 (Toll-free). Email: info@AGGenericDrugs.com or visit www.AGGenericDrugs.com.